Stackers get it, traders don’t

If you successfully traded Friday’s collapse in gold and silver, well done. But be careful not to miss out on the big moves ahead. The end of the fiat currency regime is the big picture.

At MacleodFinance we have huge sympathy for members of the public trying to understand how to protect their hard-earned and often meagre savings from market instability, particularly in precious metals.

Trying to trade this volatility is a lost cause. You may get lucky, but experience shows that nearly everyone who trades as opposed to hoards loses. The reasons are plain to see:

· Market makers see you coming, and they are very good at reading your psychology — where you are in scales of greed and fear, the two human emotions that trip traders up.

· Market makers are more powerful than you. This is because banks which own them have huge resources at their disposal to push markets wherever it suits them. Furthermore, instances of spoofing (where they place an order to influence prices without actually dealing) have led to criminal charges for the largest bullion banks and their dealers trading in gold derivatives. They do not play fair!

The current market situation in precious metals is different from normal trading activity in stocks and shares. History, particularly in the best-recorded currency collapse in Germany’s reichsmark shows that huge volatility in the relationship with gold is to be expected. On its way from 90 reichsmarks to the ounce ending up at 4,000 trillion, there were such times. And worryingly, even though the timescales are different, the dollar is showing a similar pattern to the reichsmark:

The reason to own gold and silver is simple: to get out of fiat currencies, which are facing end of life. This is particularly the case against the US dollar, which under President Trump is even losing value against other equally threatened fiat currencies.

The current selloff is above also an opportunity to stack more gold and silver at bargain prices!

This chart is a disaster for the dollar, reflecting deteriorating conditions. The US faces a debt bubble and a stockmarket bubble which could burst at any moment.